BNR: Inflation will fall substantially in third quarter but will re-enter target range at end of 2027

The annual inflation rate is expected to decrease significantly in Q3 2026, influenced by the fading effects of previous price hikes, but will fluctuate slightly in Q4 before returning to target by late 2027. The inflation forecast for December 2026 is now 6.1%, up from 5.5%, with further declines anticipated in 2027 and 2028. Supply-side factors will primarily drive the inflation trajectory, with disinflationary pressures expected to strengthen over time despite short-term challenges from rising costs in various sectors. Political stability and fiscal consolidation are crucial for managing inflation and economic stability.